Roseland looking into finances

Council members question how clerk-treasurer can legally work.

Council members question how clerk-treasurer can legally work.

April 20, 2007|MARTI GOODLAD HELINE Tribune Staff Writer

ROSELAND -- Roseland Town Council President Charley Shields became an authorized signer on the town's bank accounts Thursday and learned the town has less than $1,000 in its main account. Shields said he received an interim statement that showed $978 in the account. Shields called the bank to clarify some matters and learned the town has $66,000 in a business account. But the financial picture is far from clear, even after the Town Council took action to add Shields' signature so the council member could get access to information from the bank. The action was taken because Shields and fellow council member Ted Penn have spent three months at odds with Clerk-Treasurer Cheryl Gridley over town finances. She previously was the only authorized signer. The council members know the town has financial problems, and they want to know their severity. Shields is not sure what funds the $66,000 represents but wondered if that is money from the state's Major Moves program. The town received about $76,000 in December from Toll Road funds. Bank officials still were checking Thursday to answer his questions. Shields said he thought there should be separate accounts for the Major Moves money and CEDIT tax funds, because of restrictions on use. On Wednesday, Gridley issued a formal statement saying she will not resign her position and the Town Council has no authority to remove her from office. She posted the same notice at the Town Hall, Shields said, but someone later tore it down. "If she was doing her job, she wouldn't have to make postings," Shield said. "If she were maintaining an office in the Town Hall, as has been expected of all clerk-treasurers for 12 to 15 years and as she promised to do when she ran for office, she wouldn't have to do this." Earlier this week, Gridley filed a lawsuit against Penn, alleging harassment and an illegal attempt to eject her from her post. Penn denies the claims. Gridley, who has been working from home, even closed her office for a month. Shields said he believes Gridley is using Penn as an excuse to not work in the Town Hall. "She never got any hostility out of him or me," Shields said. Her bond, a requirement for her position, was terminated effective today by the insurance company, she said, after Penn filed a claim related to $18,000 in unaccounted funds from an audit for 2004 and 2005. "We do not want her monkeying with finances if she's not bonded," Shields said. When she said she planned to keep her post Wednesday, Gridley also said she was insured. Shields and Penn do not believe Gridley can have a legitimate bond or be insured since the Town Council has taken no action on it. "We would have to approve it," Shields said. Earlier this week, Gridley sent a memo to Penn in which she said the town had a cash balance of $71,300 on March 31 and since then had paid out about $7,500 for taxes and payroll. She said outstanding bills due were about $53,000. Whatever the numbers, Shields and Penn know there is a shortage of funds for town business. The situation is not insurmountable, according to the council members. A temporary solution may be a loan on anticipated tax funds or some other loan, Shields said. "These things have just reached the depths of ridiculousness," Shields said. "It's a terrible situation," Penn said. "These people have to be held accountable." He was referring to Gridley and council member David Snyder and his wife, Dorothy, a former council member. Shields said the council plans to have an executive session with the interim town attorney to prioritize the town's legal matters. Number one for Shields is the situation with the clerk-treasurer. An audit of last year's finances through early 2007 is expected to be completed next week by the state Board of Accounts, Shields said. Staff writer Marti Goodlad Heline: mheline@sbtinfo.com (574) 235-6327